Anytime you go through a life-changing event such as selling a house or land, there are always mixed emotions. This is true about selling your business too. Selling a business could be your life’s work. I have sold many businesses in my career that have been the life’s work and sole livelihood of a business owner. Naturally, the seller will always have mixed emotions, both good and bad. Here are some emotions I have experienced with selling a vending and office coffee business. It helps to understand these feelings to better prepare yourself when it comes time to exit the business.
Nervousness
When I get calls from potential sellers asking about selling their business, the first emotion I generally experience with them is nervousness. They are generally nervous about making a call to a business broker to discuss selling their life’s work and livelihood. The worry of the news getting out is always a concern. We keep this confidential and would never broadcast this to anyone or any social media. We like to go over the reality of what price to expect and general details about starting this process.
Excitement
There are always mixed emotions of excitement. The thought of not having to run a business anymore is exciting. The thought of retiring is exciting. The thought of achieving the next steps in life to pursue new adventures. Excitement can also mean being nervous, especially with unknown effects of selling the business.
Guilt
This is very common when selling a business. There are so many “what ifs.” You think about what will happen to your employees, family workers and customers. When it comes to a family business, the feelings of guilt are usually higher given the what ifs with family members. We are seeing second- and third-generation owners selling the family business. Guilt always plays into emotions when you are a second or more generational owner looking to sell the business. It’s all human nature. There are always reasons why you sell, and if running the business is not your life’s goal, then you could be doing it a disservice by not putting your heart and soul into the business. Let’s find a buyer who can continue the business so that life can be a better experience for you, and you can pursue the next adventure in life.
Stress
Stress will always play into selling a business. Just gathering up the due diligence information will be stressful. Having a buyer ask you questions about your business methods and question your decisions will be stressful. I often remind sellers why they are selling the business in the first place. When you open up your business to a potential buyer, they may run things differently than you do. Due diligence is always stressful due to the unknown. Having a business broker on your side gives you an outside party to communicate with and ask the question of why a seller wants to know certain things about your business.
Uncertainty
For many sellers, the question of “Am I making the right decision to sell” is always an issue. Because you are on the first track to explore selling your business, you are uncertain of how it will turn out. I have had sellers contact me, only to change their minds soon after. There have been sellers who I have discussed for years about selling the business. Many operators say, “I need to grow the business more before I sell.” If this is the case, why haven’t they already built the business to be higher in sales? This is where expectations can be discussed with a business broker. I always like to be upfront and honest with the seller about what the company is worth. There are so many things that come into play when valuating a business for sale. Sometimes, a potential seller will find out what their business can be sold for, and they elect to continue running the business. You didn’t build the business overnight; don’t expect it to sell overnight. Focus on why you want to sell – and the goals you look forward to once the business is off your back.
After-the-sale emotions
I like to ask the sellers after a period of time, are they glad they sold the business. Not one has said they regret it. Some are retired, some work for the buyer, but never has any seller said they wished they still owned the business. Running a vending and office coffee business is tough and stressful. It’s amazing how not having that stress on your body can make you feel. I always tell sellers, there is nothing wrong with having a large hunk of money in the bank, enjoy it and open the next life chapter.
ABOUT THE AUTHOR
Mike Ferguson a business broker and owner of VMAC Solutions. He specializes in selling office refreshment businesses when the operator is ready to exit the business. He has over 33+ years of ownership and operations experience of a vending and office coffee company. He can be reached at 713-569-6463, email [email protected] or visit www.VMACsolutions.com.
